A key reason that actively managed funds have lower returns than index funds with a similar level of risk is that:

Question

Business

Geovanni Hinton

8 September, 10:19

A key reason that actively managed funds have lower returns than index funds with a similar level of risk is that:

+1

Answers (1)

Know the Answer?

Deven Guerrero · Answer 1

Arbitrage reducing the returns of actively managed funds is a key reason that actively managed funds have lower returns than index funds with a similar level of risk

To add, actively managed funds typically have higher fees than passively managed funds.